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CFTC APPROVES CME PROGRAM TO LIFT POSITION LIMITS ON EURODOLLARS, CURRENCIES

 CFTC APPROVES CME PROGRAM TO LIFT POSITION LIMITS
 ON EURODOLLARS, CURRENCIES
 CHICAGO, Jan. 8 /PRNewswire/ -- The Chicago Merchantile Exchange (CME) announced today that it has received approval from the Commodity Futures Trading Commission (CFTC) to lift position limits on futures and options on Eurodollar and major currencies.
 "As the world's leading financial futures exchange, we requested this removal of position limits by the CFTC to facilitate the burgeoning number of transactions by large managed funds," said CME Chairman Jack Sandner. "These funds increasingly take diversified positions in futures and options as a means of improving yield and very often have achieved outstanding returns for their investors. They need the flexibility to transact business beyond what traditional position limits allow.
 "Such transactions demand liquidity and, in turn, provide liquidity to the markets," Sandner continued. "No other exchange in the world is working harder than the Chicago Mercantile Exchange to provide liquid, efficient markets for both global investment and global risk management."
 The program becomes effective at the close of business on Tuesday, Jan. 14. Contracts effected by the program are:
 Eurodollar Futures and Options
 British Pound Futures and Options
 Deutsche Mark Futures and Options
 Japanese Yen Futures and Options
 Swiss Franc Futures and Options
 Under the program, proposed by the CME Board of Governors on July 10, 1991, market users who control positions exceeding the previous 10,000 net position limit in any of these markets must provide, if requested by the exchange, information regarding the nature of the position, trading strategy and hedging information, if applicable.
 "This program addresses the need for trading size and liquidity by market users while maintaining safeguards of market integrity that are essential to all market participants," said CME President and CEO William J. Brodsky. "This program should permit these institutional investors to make even greater use of our markets to increase return and manage risk."
 Other recent initiatives undertaken by the CME to facilitate managed fund transactions include:
 -- An Average Price System (APS), which will enable member firms to give their customers an average price on orders executed at multiple prices. The system has been developed and is awaiting approval by the CFTC.
 -- Large Order Execution (LOX), which facilitates large transactions through the Open Outcry auction process. Such a rule has already been implemented for S&P 500 Stock Index Futures and is being developed for currency futures contracts.
 -0- 1/8/92
 /CONTACT: Andrew Yemma of Chicago Merchantile Exchange, 312-930-3434, or fax, 312-930-3439/ CO: Chicago Merchantile Exchange ST: Illinois IN: SU:


PS -- NY135 -- 8016 01/08/92 19:50 EST
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Date:Jan 8, 1992
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